Indian pharma companies now confront a new challenge as the cost of imports from China has gone up. Chinese suppliers have raised the prices of various APIs (active pharmaceutical ingredients), KSMs (key starting materials) and certain drug intermediates. Estimates vary depending on the product in question.
Indian pharma companies import API products from China. But, during the recent COVID-19 pandemic leading to lockdown in India and other countries, China increased its API prices. This rise is to the tune of 20 per cent to 100 per cent, which is costing Indian pharma companies dearly.